Industrial Production Equals Highest Level Since February 2008

 

The October 2011 consumer durable goods industrial production index reached 95.5—its highest level since February 2008. This level is 9.6 percent higher than it was in October 2010. It is also the third consecutive month of growth in the one-month rate of change. And, the one-month rate of change for consumer durable goods industrial production has been growing for 22 consecutive months. The quarterly rate of change has grown faster each of the last three months. And, the annual rate of change has grown faster for the last two months.

 

Two significant factors contributing to the improvement in industrial production are the weaker dollar and the general reshoring initiative as companies realize the cost of long supply chains and lesser quality. The fastest growing major end markets I track are engines, turbines, power transmission, aerospace and medical—each month they are growing faster and faster. Farm equipment is the only major end-market segment that has contracting industrial production.